A Day in the Life of Payroll – Mysteries of Payroll Revealed

A Day in the Life of Payroll – Mysteries of Payroll Revealed

Last year I went to the Secrets of Stonehenge Revealed exhibition and it has inspired this title – Mysteries of Payroll Revealed, because for many people payroll is as much of a mystery as Stonehenge.

Every week/fortnight/month money appears in personal bank accounts and everyone breathes a sigh of relief – bills can be paid, that new outfit can be bought, that dinner date can go ahead.

The biggest sigh of relief comes from the one who have processed that payroll – the payroll administrator/officer/specialist/manager: Another pay run over, xxx number of employees paid, …until the next pay run when it starts all over again.

Let’s explore the day in the life of a payroll administrator. For the purposes of this exercise I have condensed the process into an 8-hour day. While payroll can take more time than this, the steps are often the same.

Minus 8 hours to payroll commit

Check that timesheets are approved. Out of 10 timesheets, 1 is not approved. Send email to manager. Get an out of office: “I’m currently walking Milford Track and have limited access to emails. If your request is urgent, please email…” Try to track down an alternative approver because the suggested email belongs to someone who does not the authority or access to approve the timesheet.

Dayforce Solution:  Managers can delegate authority to another person in their team who can approve timesheet while they are away.  They can also approve leave requests so that these can be included in the pay run.

Minus 7 hours to payroll commit

All timesheets now approved. Download timesheets/leave approvals for upload to payroll software. Upload fails. Refer to IT Support to assistance. It may surprise most people to know that often the schedules/timesheets are held in one application and payroll in another so there is a download/upload required to process payroll.

Dayforce Solution: Dayforce is an integrated system meaning both time and attendance and payroll processing are held in the same system so therefore file downloads/uploads of timesheet and/or leave data is not required.

Minus 6.5 hours to payroll commit

Issue with upload resolved and timesheet/leave approvals uploaded to payroll software.

Minus 6 hours to payroll commit

Manager now remembers that an adjustment needed to be made to someone’s pay/hours/overtime and meant to tell you last week but has just remembered. Could this be done this pay? Unlock timesheets so that manager can add hours/overtime, wait for approval, lock timesheet again. As upload has already been done and can’t be uploaded again, add the adjustment manually to correspond to the timesheet entry.

Dayforce Solution: If a last-minute adjustment to a timesheet needs to be done, the payroll admin can unlock the timesheet, the manager makes and approves the adjustment and the timesheet can be locked again. The payroll admin then needs to do is recalculate the pay run for the adjustment to be included in payroll.

Minus 5.5 hours to payroll commit

Run payroll in the system. Very often this is not just a matter of pressing a button, but having to go through a series of steps as the payroll system takes the payroll data such as rate of pay, hours worked, overtime, leave etc, draws that into the payroll system, matches up the days/hours worked then works out tax rate and superannuation etc according to the settings in payroll.

Dayforce Solution: What makes Dayforce payroll unique in the payroll workspace is that a pay run can be opened and calculated at any time in the pay period and can be checked for anomalies continuously throughout this period. This means that errors can be fixed ahead of time which allows in-depth analysing, reviewing and correcting pay data prior to pay period end.

Minus 5 hours to payroll commit

Software system throws up a calculation error – something is not matching up in the system. Investigate and attempt to discover what this is and fix the system. Log a ticket with Support.

Dayforce Solution: Dayforce has dedicated payroll support 24/7 that allows system errors to be logged as a Severity 1 Case. This is reserved for genuine emergencies where an issue is impacting payroll commit. This service “follows the sun”, that is, the support team is world-wide so the ticket will be attended to in real time, without waiting for a support team in another region to arrive at work. So applicable to New Zealand which can be as much as a day ahead of other regions.

Minus 4.5 hours to payroll commit

Run payroll reports. In most systems this also includes a report to compare the last pay run to current pay to identify where a particular pay may be over/under. This works well for normal Monday to Friday 8 hours a day, 40 hours a week staff but a little trickier for those with variable hours. Unpaid leave can also skew a regular pay as well as extra hours worked. Find and correct any discrepancies. This can be the most labour-intensive part of payroll.

Dayforce Solution: Dayforce has several audit tools within the payroll module which allows checking according to several parameters, such as gross pay comparison to last gross pay, audit summary whereby individual earnings, deductions, tax etc can be reviewed, as well as summary audits. And, as per the point above, this can be done at any time ahead of the pay period end date to identify discrepancies and errors well ahead of pay date.

Minus 3 hours to payroll commit

Send payroll reports to payroll authoriser to be checked and approved.

Minus 2.5 hours to payroll commit

Approver has query on some employees’ earnings and/or deductions of the payroll report. Investigate and report back.

Dayforce Solution: Within the payroll module, payroll admins can filter on an individual employee and view their actual payslip in a fly-out screen. This fly-out also has additional tabs such as timesheet, time data and GL preview (if configured). This makes investigating and reporting on elements of an employee’s pay fast and an explanation provided timeously so that the authoriser can proceed. 

Minus 2 hours to payroll commit

Payroll approved. Next step is to create the bank file to upload to the bank so that staff can be paid. File downloaded and uploaded to the bank. Bank returns an error message – a bank account number is incorrect. Delete upload and track down the bank account causing the issue, go through employee records, find the bank account on file and compare. Amend bank account and attempt to upload file again. Note that in some software programs, you must reprocess the pay run again for the bank file to download with the new bank account. This is a security feature but takes up time.

Dayforce Solution: The bank file is created as soon as the pay run is committed. If a bank number is incorrect, this can be corrected in employee’s records and the bank file generated again without having to reprocess the pay run.

Minus 1 hour to payroll commit

Send message to bank file approvers to authorise the payment files in the bank. Follow up with approvers. Breathe sign of relief when this is done.

Zero hour – payroll committed

Post Payroll

Send out payslips and print/download payroll reports. Upload payroll journals to accounting system.

Dayforce Solution: While providing a payslip is not a legal requirement in New Zealand, it is best practice to do so. Dayforce produces payslips as an Earnings Statement which are added to an employee’s record and are available within Dayforce for the employee to log in and view. 

Furthermore, these earning statements are stored in one area of the employee’s record so that they access not just the current payslip but also previous payslips. Payroll reports run automatically on payroll commit so are available to download from Archived Reports within the pay run. And if the GL export has been enabled, this is also available either as an archived report or as a file transfer to a SFTP system such as Filezilla.

Plus 1 hour after payroll commit

Employee sends email; “My pay is wrong, you didn’t pay me for…”

Dayforce Solution: While errors in payroll can always occur, especially as payroll personnel tends to be the last to know, as Dayforce is an integrated system the possibility of persistent errors is reduced. The HR record within Dayforce holds all compensation data such as employee’s salary, days and hours worked, entitlement policy, pay policy and payroll policy. 

The payroll elections feature holds regular earnings such as allowances, as well as regular deductions. The Time Away From Work module holds leave information and feeds approved leave directly into the employee timesheet.

All these elements are loaded into the pay run once it is opened and calculated. An amendment made to any of these elements can be calculated and viewed at any time in the pay period to ensure that the pay is correct. Mistakes happen but with all these elements embedded in the one system, there is less chance of a mistake occurring.

And a mistake-free pay run makes for happy employees 😊

Alxemy undertakes a Sky-high payroll project

Alxemy undertakes a Sky-high payroll project

With a vision to strengthen their HR recruitment systems and employee experience, Sky New Zealand engaged ELMO, a HR and payroll solution provider, to strengthen their talent acquisition capabilities, remuneration, performance management and succession in addition to refining their financial control systems.

Once the implementation got underway, complexities of the project came to light as the scope expanded, and feedback from the payroll team indicated unanticipated challenges mixing their new HR solution with their current payroll provider, PayGlobal during transition.

Furthermore, the new payroll solution accompanying ELMO HR, brought with it some challenges of its own.

To minimise the risks, they brought Alxemy onboard to support the implementation project and bolster Sky TV’s internal resources, affording them the ability to manage both BAU as well as the implementation project.

Alxemy proved a perfect payroll partner for Sky New Zealand – and continue to be – because they:

  • Have extensive project management skills and expertise industry wide.
  • Have the ability to work through and around the complexities of a large enterprise level system integration project, streamlining HR and payroll processes.
  • Could advocate for Sky New Zealand and develop a new business continuity plan to future-proof Sky’s payroll processes.

The project’s end result? Sky New Zealand now have their HR and payroll systems collaborating seamlessly with one another, and have cemented an ongoing relationship with Alxemy.

A solution that ticks all the boxes

Sky New Zealand has a head count of over 600 people. As a national broadcaster, providing media services countrywide, and employing a range of full time & part time staff and contractors, having a centralised, efficient, and compliant HR and payroll platform in place was a must.

With a robust solution they would be able to attract talent, manage workflows more efficiently and meet the needs of their people, all the while simplifying HR & payroll processes across the board.

Knowing this, Sky New Zealand went out to market to find a solution that met all their requirements. After an in-depth selection process, they chose ELMO as a full end to end solution in HR.

Seeking a trusted hand

As can be the case, with enterprise level system implementation projects, there can be unexpected complexities along the way. These complexities can become amplified and extensive when you add the integration of multiple systems to the scope.

As can be the case, with enterprise level system implementation projects, there can be unexpected complexities along the way. These complexities can become amplified and extensive when you add the integration of multiple systems to the scope.

Alxemy steps in as Sky’s payroll partner

Because of their strong reputation, Sky’s Head of People Operations Property & Safety, Alex Howieson, reached out to the team at Alxemy for payroll support.

Working in tandem with Sky’s Payroll Manager Anu Balasooriya, Alxemy and Sky worked closely with the team, actioning agreement requirements and adjustments in accordance with Sky’s business processes.

Over several months the Alxemy team implemented and executed systematic manual workarounds to address any calculations and processes for which the system did not cater, and worked internally to assist the payroll team with payroll two-days a fortnight.

As part of the project, Alxemy also assisted with delivering:

  • agreement requirements
  • reporting for the finance team
  • streamlining of all payroll processes
  • automation of processes where possible

Alxemy didn’t just sign off on project completion, today they continue to provide payroll support when required.

Future-proofing payroll for Sky

Trust and exceptional service resonated across the project. Sky’s Head of People Operations Property & Safety, Alex Howieson was highly impressed with Alxemy’s professionalism – their service culture an essential key to project success.

“Alxemy went above and beyond the call of duty and superseded our expectations,” says Alex. “Their profound expertise, exceptional organisational qualities continue to serve us beyond implementation. I can’t identify any areas for them to improve upon.”

And the trust and understanding between Sky and Alxemy has expanded beyond individuals to a companywide relationship.

“We now have streamlined processes, a business continuity plan, and Alxemy are helping us two-days every fortnight which means our payroll manager now has the ability and confidence to take time off. We’re in a safe pair of hands.”

Conclusion

Sky New Zealand now benefits from a robust, streamlined, and compliant HR and payroll system, with Alxemy continuing to provide invaluable support. This partnership not only resolved immediate challenges but also equipped Sky with the tools and systems needed for long-term success.

Alxemy partners with Dayforce

Alxemy partners with Dayforce

Alxemy partners with Dayforce to drive Payroll, Workforce Management, and HCM transformation with New Zealand organisations

Auckland, New Zealand, August 17th, 2023 – Alxemy, today announces a strategic partnership with Dayforce, a global human capital management (HCM) technology company. Alxemy will offer Dayforce’s award-winning HCM platform, as well as consultation and implementation services to organisations across New Zealand.

Dayforce offers full-suite HCM to help HR, Finance, and operational business leaders make decisions that create quantifiable value for their companies. Trusted by more than 6,200 customers globally, the modern Dayforce platform simplifies complex HR and operational processes by combining HR, payroll, benefits, workforce management, and talent management. The Dayforce platform’s unique single system for all HCM solutions enables advanced insights and predictive analytics.

“Alxemy’s partnership with Dayforce allows us to combine world-class HCM technology with deep knowledge of New Zealand legislation, organisational requirements, and years of experience in delivering successful enterprise Payroll, workforce management, and HCM projects to transform our clients’ HCM technology stack and support growth, automation, simplification, and deliver an exceptional end user experience to their employees” said Stephan Blumenberg, Director and Principal Consultant at Alxemy.

Dayforce’s collaboration with Alxemy is part of the Dayforce Partner Network, where businesses can access holistic services to help modernise their HCM processes. System integrator partners combine their Dayforce expertise with deep advisory services to provide expert guidance on organisational, functional, and process development at the industry, regional, or global level.

“Organisations around the world are facing a growing complexity crisis, driven by evolving employee expectations and a dynamic compliance landscape. We look forward to partnering with Alxemy to deliver quantifiable value and world-class experiences to organisations in New Zealand through our industry leading Dayforce platform,” said Brian Donn, Head of Revenue, Asia-Pacific Japan at Dayforce.

Blumenberg goes on to say, “Alxemy believes that, by forming this strategic partnership, we will be able to deliver exceptional value to our clients and help them make better business decisions that will result in an optimised workforce, employee attraction and retention, and insights to rich and vital data across business units and geographies that ultimately save time and money.”

Public Holidays and Mondayisation

Public Holidays and Mondayisation

Please note, this is an overview only, based on practical experience in dealing with these matters on a daily basis. We describe only the minimum requirements outlined by the Holidays Act 2003. Companies may go over and above, or have collective agreements that provide specific additional entitlements for public holidays. We are not lawyers and this post should not be seen as legal advice

New Zealand has 11 official public holidays until 2021. Following that, an additional public holiday comes into effect (Matariki)

The 10 fixed (11 from 2022) days are:

  • 1 January (New Year’s Day)
  • 2 January (Day after New Year’s Day)
  • 6 February (Waitangi Day)
  • Good Friday
  • Easter Monday
  • 25 April (ANZAC Day)
  • Queen’s Birthday
  • Matariki (from 2022) – falls on 24 June in 2022 and will change year on year
  • Labour Day
  • 25 December (Christmas Day)
  • 26 December (Boxing Day)

In addition to these fixed days are regional public holidays (Anniversaries). This is a single day, which is recognized on a different day across each of New Zealand’s regions.

Anniversary days are generally observed in their respective region on the Monday closest to their official date, except for Canterbury and Hawke’s Bay, which fall on a Friday. However, this does vary year on year. The Anniversary days in each province for 2022 are:

  • Auckland – 31 January
  • Taranaki – 14 March
  • Hawke’s Bay – 21 October
  • Wellington – 24 January
  • Marlborough – 31 October
  • Nelson – 31 January
  • Canterbury – 11 November
  • Canterbury (south) – 26 September
  • Westland – 28 November
  • Otago – 21 March
  • Southland – 19 April
  • Chatham Islands – 28 November

Otherwise Working Day

The first step is to determine whether the day would have been an otherwise working day for the employee in question. All calculations following that, rely on this to be known.

From Otherwise working day » Employment New Zealand

“In many cases it is easy to work out whether or not an employee would otherwise have worked on the day in question because the working pattern or roster is constant, and the employer and employee can easily agree about whether the employee would otherwise have worked that day.”

Unclear whether a day is an otherwise working day

If it is unclear whether the day is an otherwise working day for an employee, the things that the employee and employer must consider in trying to reach agreement include:

  • what the employment agreement says
  • the employee’s usual work patterns
  • any other relevant factors such as:
    • if the employee works for the employer only when work is available
    • the employer’s rosters or other similar systems
    • the reasonable expectations of the employer and employee as to whether the employee would have worked on that day
  • if the employee would normally have worked if it were not a holiday (public or alternative) or if the employee were not on leave (sick or bereavement)

The employer and employee must consider all these factors when trying to reach agreement, e.g., the employer cannot just rely on one and then conclude that the day is not an otherwise working day.

Working out whether the day is an otherwise working day is a practical task, and each situation needs to be considered based on the employee’s specific situation and work pattern.

If the day falls during a closedown period, the above factors need to be considered as if the closedown period weren’t in effect.

Entitlements for Public Holidays in New Zealand

Entitlements for Public Holidays are covered in the Holidays Act 2003, sections 46 to 50.

When an employee does not work

If the day would otherwise have been a working day, then the employee should be paid at Relevant Daily Pay or Average Daily pay for the day in question.

If the day would not otherwise have been a working day, then the employee has no entitlement.

When an employee works

If the day would otherwise have been a working day, then the employee is entitled to:

  • be paid at their Relevant Daily Pay or Average Daily Pay rate for the hours worked on the public holiday at T1.5
    • We believe that “Average Daily Pay” in this instance is not being correctly referred to in the Holidays Act 2003, because it is always possible to determine what the employee would have earned, because they actually worked on the day
    • Note it is not necessary to multiple already existing penal rates by a further 1.5. For example, if a company already pays T1.5 for working on a Saturday, it is not necessary to pay T1.5 x T1.5 for working that day, if it were a public holiday
  • Receive a full alternative holiday (1 unit / day, regardless of how many hours are worked on the public holiday)

If the day would not otherwise have been a working day, then the employee is entitled to:

  • be paid at their Relevant Daily Pay or Average Daily Pay rate for the hours worked on the public holiday at T1.5
    • We believe that “Average Daily Pay” in this instance is not being correctly referred to in the Holidays Act 2003, because it is always possible to determine what the employee would have earned, because they actually worked on the day
    • Note it is not necessary to multiple already existing penal rates by a further 1.5. For example, if a company already pays T1.5 for working on a Saturday, it is not necessary to pay T1.5 x T1.5 for working that day, if it were a public holiday

Monday & Tuesdayisation

This scenario occurs when a public holiday falls on a weekend (either Saturday or Sunday or both). In this case it becomes necessary to determine whether the actual public holiday (weekend day) should be recognized or whether it should be Monday or Tuesdayised. Tuesdayisation only occurs when both Christmas and both New Year days fall on a Saturday and a Sunday.

In this case it is still just as important to determine whether the day(s) in question is(are) an otherwise working day for the employee.

Simple reference

  • Under no circumstances is it necessary to pay an employee entitlements for the same public holiday twice
  • If an employee’s otherwise working day falls on the Sunday and not the Monday, then Sunday is their public holiday
  • If an employee’s otherwise working day falls on the Monday and not the Sunday, then Monday is their public holiday
  • If both Sunday and Monday are an otherwise working day for the employee, then Sunday is their public holiday
  • If both Christmas and Boxing Day fall on a weekend, then Saturday could be Mondayised and Sunday could be Tuesdayised
  • Whichever day is determined to be their public holiday, should have the normal public holiday entitlements applied as per above

NB: it should not be necessary to make these calculations manually. Any good rostering, time and attendance and award interpretation software should be able to fully automate this process.

Employment New Zealand Flowchart

Below is a flow chart that has been published on the Employment New Zealand Website

Figure 1 – Mondayisation logic Employment NZ